Question

Orlando Company manufactures phones in a two-department process that includes Assembly and Finishing. Information about the Assembly Department follows: Direct materials added $310,000 Direct labor 460,000 Factory overhead 230,000 Total costs to account for $1,000,000 There was no beginning inventory and 80,000 units were started in the Assembly Department. By the end of the month, 67,200 units were completed and transferred to the Finishing Department and 12,800 units were still in process. The partially complete units were 100 percent complete with regard to direct materials but 75 percent complete with regard to conversion costs. The equivalent units for materials for the month for the Assembly Department

Answer 1

80,000 units

Step-by-step explanation:

The Concept of Equivalent units measures the physical units completed in terms of completion percentage of input components.

Note that The partially complete units were 100 percent complete with regard to direct materials, thus both the units in hand and units completed and transferred are 100% complete in terms of raw materials.

Materials :

Units in hand (Closing Work - In Process) - 100% 67,200

Units completed and transferred - 100% 12,800

Total 80,000

Therefore the equivalent units for materials for the month for the Assembly Department is 80,000 units